Does It Make Sense To Take Advantage Of Zero Percent Car Financing
The Truth About Zero Percent Car Financing
Many car dealerships out there will advertise 0% car finance and buyers will naturally jump at the great deal. After all, on a vehicle that costs thousands of dollars, you could end up saving thousands versus a five-year loan with interest. But 0% car financing is not going to be for everyone. Offering you the chance to drive away in a new car with zero percent car financing is going to be a great way for the dealership to get you onto the lot. Many people will mistakenly believe that they can afford an even more expensive car with a no upfront cost loan because they will not be paying large car finance rates of interest. But this ends up being rarely the case.
Have you ever noticed on those commercials for zero percent car financing that seemingly half of your television screen is filled up with fine print that is so tiny that you pretty much need a magnifying glass to read it?
Zero percent auto financing is only for perfect credit
Very few people will actually be able to qualify for the 0% auto financing. Your credit report largely determines if you will be able to qualify for this type of financing and the guidelines for credit can actually be very strict. If you happen to have perfect credit, these deals may be attainable for you but many borrowers have at least one blemish on their credit report. That one blemish can end up ruining your chances for this type of financing. But by the point that you are discussing the interest rate at the car dealership, you already have the feeling as if the car is yours to drive away in. The dealer knows this and will utilize your enthusiasm to help their bottom line.
Zero percent car financing is only for specific vehicles
Dealers will typically only offer the 0% percent car financing option on select vehicles on their lot. Nine times out of ten it is only go to apply to the slowest moving vehicles that have this great deal attached to them. It is the dealers way of providing an incentive to the buyer so that they can get the vehicle off of their lot. If you are sitting there and dreaming of a slower selling car, this may end up being a great deal for you. But for many of us, our dream car is not going to be offering the 0% car financing option.
You cannot get yourself a rebate and 0% car financing
Dealers will sometimes advertise that they offer 0% percent car financing and a rebate. But in the small print, you will find that you can have one or the other, but you can not have both. You will have to look at the numbers closely to decide whether the rebate or the car finance rates is the best way for you to end up going. But for those of you who do not qualify for zero percent car financing because of credit history, the rebate is going to be your best bet still.
This proves to be especially true when speaking about zero percent car financing. You have to be very careful with these offers because there is always fine print that can turn it into something that you were not quite expecting in the first place. Knowing what your options are and how to take advantage of them will save you money in the long run as well as the short term.